Mercurio, Brazil– Gold Project
Solitario has conducted an aggressive evaluation/acquisition program of gold prospects in the Tapajos region of northern Brazil for the past several years. We made field evaluations of more than a hundred prospects during this period. This effort paid off in 2005 with the initial drill testing of the 8,000-hectare Mercurio project where we intersected strong gold mineralization in multiple core holes.

We continue to be encouraged with the drilling results from our 100%-owned 8,550-hectare Mercurio gold project situated in the Tapajos region of northern Brazil. It is estimated that the Tapajos gold region, an area about the size of Colorado, has produced 30 to 40 million ounces of gold by local small-scale mining of soils. The Mercurio property, located near the center of the Tapajos region, has relatively easy access by a seasonal unimproved road that services the region.

In 2006 we followed up our 2005 drilling campaign with a second round of drilling by completing 11 additional core holes totaling 1,596 meters. In total, 18 out of 23 widely spaced drill holes have intersected significant gold mineralization in the 2005 and 2006 drilling campaigns.

Highlights of 2006 drilling include core holes SB-16 that intersected 7.0 meters grading 6.8 grams per tonne ("g/t") gold, SB-18 that intersected 34.0 meters of 2.7 g/t gold and SB-20 that intersected 25.5 meters grading 1.6 g/t gold. At the Colonia prospect in the southern part of the property, a mineralized east-west structural trend has been traced for at least 400 meters. This trend remains open in both directions along horizontal strike and at depth. At the Patoa prospect further north, two holes, SB-04 drilled in 2005, and SB-18, may represent a separate mineralized trend. These holes intersected 12.2 meters grading 12.2 g/t gold and 34 meters of 2.7 g/t gold, respectively. In addition, SB-20, that intersected 25.5 meters of 1.6 g/t gold, was drilled 600 meters west of the main Patoa area and suggests significant new potential for the Patoa zone. Finally, at the Tucanaré prospect, all five drill holes completed have intersected gold mineralization and we are planning additional work to determine the size of this highly prospective zone.

Our exceptional success ratio in interesecting mineralization at Mercurio confirms our optimism about the potential of the property. 2008 third round of drilling highlights include core holes SB-25 that intersected 10.4 meters grading 8.0 grams per tonne ("g/t") gold and SB-35 that intersected 2.0 meters of 10.1 g/t gold. In total, six of the thirteen widely spaced drill holes intersected significant gold mineralization in this program. Access 2008 drilling results.

A total of 36 drill holes have thus far tested three principal target areas: the Colonia, Patoa and Tucanaré prospects. At the main Colonia trend, a mineralized east-west structure has been traced by drilling for about 500 meters. This trend remains open in both directions along horizontal strike and at depth. Of the two holes drilled this year at the new Jamil prospect in the southern part of the Colonia area, one contained 10.4 meters of 8 g/t gold. The one hole drilled in another completely new area, Dorado, in the northern part of the Colonia area intersected 10.1 g/t over 2 meters.

At Patoa, previously announced drill holes SB-04, that intersected 12.2 meters grading 12.2 g/t gold, and SB-18, that intersected 34 meters grading 2.7 g/t gold, may represent the same mineralized trend. In addition, SB-20, that contained 25.5 meters of 1.6 g/t gold, was drilled 600 meters west of the main Patoa area and represents significant untested potential of the Patoa zone. Finally, at the Tucanaré prospect, all five drill holes have intersected gold mineralization.